TDS calculation - yearly guaranteed/variable bonus

Amal Sheriff
I need your help out here for TDS calculation under two scenarios
1. One of my employee is eligible for yearly guaranteed bonus of Rs. 2 Lakhs (Eligible under which he should work for continous year,which will effective this month and this is the first month of eligibility), along with his monthly gross of Rs. 1 Lakh.
Now the situation from employee concern is that he wants the same amount to be credited in his account as salary itself which would be around 12laks per annum to avoid more TDS deduction. Hence the management wants me to get them the calculation for 14 laks per annum under 1 scenario.
2. TDS calculation for Rs. 12 lakhs + 2 lakhs variable. Here in which I'm getting confused what would be the actual calculation.
Please help me in this.
praveen446
Hi Amal,
TDS will be calculated from 1st April to 31st March of every year. If he joined in the month of Feb'18 then you need to calculate Feb & March salary for this year IT and balance 10 months will be calculated in next year. If you are paying bonus after one year, then you need to consider bonus amount in next year as a his earnings.
TDS will be calculated considering other provisions of the act. Example- HRA, 80 C savings, Medical insurance, Housing loan etc.
Best Regards
Praveen Bhosale
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